As per the settlement, Murphy will pay 35,000 pounds a month until their daughter, Iris Angel, turns 18.

This simply means that the actor will have paid about seven million dollars by that time.

Eddie is also said to have agreed to see his 20-month-old child.

The Hollywood actor had been fighting his legal battle with Mel in Los Angeles courts for 15 months, during which the latter was determined to force him to play a part in his child's life.

Sources have revealed that both of them have signed non-disclosure contracts, which prevent them from discussing their settlement in public.

"Mel is delighted that the case is over as she just wanted what was right for her girl. It was never about money - it was Mel's way of asking Eddie to show consideration for Angel," News of the World quoted one of Scary Spice's pals as saying.

The couple's drawn-out battle began when Murphy denied he was Angel's father back in April 2007.